The Groundbreaking of King Salman Energy Park

By
The Arabian Sun /
/
19 December 2018

Celebratory fireworks ignite in the skies over Dhahran on Monday following the groundbreaking ceremony for King Salman Energy Park, as an image of HRH Crown Prince Mohammed ibn Salman is superimposed on the King Abdulaziz Center for World Culture. The Crown Prince was in attendance to launch the groundbreaking.

Dhahran — HRH Crown Prince Mohammed ibn Salman ibn ‘Abd Al-‘Aziz Al Sa’ud on Monday broke ground on the King Salman Energy Park (SPARK), located in the Kingdom’s Eastern Province. The groundbreaking was close to the Prosperity Well, which signaled the Kingdom’s transformation some 80-plus years ago.

SPARK is a 50-square-kilometer energy city mega-project that will position Saudi Arabia as a global energy, industrial, and technology hub.

SPARK has already attracted investments from foreign and local companies to produce and manufacture goods and services in the Kingdom’s energy sector. Schulmberger, Baker Hughes GE, Halliburton, Oilfields Supply Center, Emerson, National Energy Services, Valco, Huatong, Borets, and the Al-Rushaid Group have all shown a dedicated interest in its development, with the investment in the first phase of the project expected to be approximately $1.6 billion.

Leading executives from foreign and local companies take their places along side HRH Crown Prince Mohammed ibn Salman and other royalty and dignitaries during Monday’s groundbreaking ceremony for King Salman Energy Park (SPARK). Among those who have shown a dedicated interest in SPARK’s development are Schulmberger, Baker Hughes GE, Halliburton, Oilfields Supply Center, Emerson, National Energy Services, Valco, Huatong, Borets, and the Al-Rushaid Group. Investment in the first phase of the project is expected to be approximately $1.6 billion. (Photos by Saleh M. Shabeeb and Mohammed Alshaikh/MPD)

Unlocking Energy’s Full Potential

Saudi Aramco is at the heart of SPARK’s development, helping bring businesses together to drive efficiencies and promote technological development, manufacturing, and exports, as well as build a worldclass energy supply chain. SPARK’s role in enabling localization in the Kingdom’s energy supply chain aligns with the strategic goals of Saudi Aramco’s In-Kingdom Total Value Add (iktva) program.

Highlighting SPARK’s role in unlocking the full potential of the Kingdom’s energy resources in line with its economic transformation plan, HE Khalid A. Al-Falih, Minister of Energy, Industry and Mineral Resources and chairman of the Saudi Aramco Board of Directors, said: “SPARK is one of the country’s most ambitious projects, affirming the Kingdom’s commitment to Saudi Vision 2030 by creating thousands of high-skilled jobs, serving as an economic catalyst, and advancing Saudi Arabia’s strong position in the global energy sector. The energy park’s unique value proposition makes it an ideal destination for companies looking to invest in the thriving Saudi Arabian energy services market.”

Saudi Aramco president and CEO Amin Nasser said: “King Salman Energy Park will start a new era of growth for one of the Kingdom’s thriving sectors. It will serve as a central gateway to the region’s economies, with Saudi Aramco continuing to be at the heart of the global oil and gas industry. We’re looking forward to collaborating with our first anchor partners at SPARK, as we are investing in business opportunities for international investors and private-sector companies in the Kingdom. Together, we are building a world-class energy hub that will accelerate solutions across the value chain for generations.”

When operational, SPARK is expected to contribute more than $6 billion to the Kingdom’s gross domestic product annually and create up to 100,000 direct and indirect jobs.

About SPARK

During the groundbreaking ceremony, internationaland local business leaders had a chance to networkand discuss the transformational potential of theKing Salman Energy Park and related investmentopportunities.

Saudi Aramco collaborates closely with the Saudi Authority for Industrial Cities and Technology Zones, which plays a vital role in developing industrial cities with integrated infrastructure and services.

Built in the Eastern part of the country between Dammam and al-Hasa, the area will unite approximately 300 industrial and service facilities.

Two-thirds of the development consists of industrial land. The remaining part is a mixed-use community with housing, offices, training centers, hotels, and other supporting facilities offered as investment opportunities to real estate investors.

Also, a modern logistics zone connected to the future GCC railway will offer a wide range of services and include an inland dry port, a bonded area, and a logistics park with warehouses, among others. The highly automated dry port is expected to have an annual cargo capacity of 8 million metric tons.

Meanwhile, Saudi Aramco will transfer its Drilling and Workover operation headquarters to SPARK.